Finally, Some “Positive Inflation Numbers” From Japan
The Japanese economy has been going through difficulties for about two decades, for those who didn't know. Trouble started in late '90s with the Asian financial crisis and, a decade later, the 2008 global financial crisis made things worse.
Growth and GDP have suffered during this time, but inflation has been the weakest link of all this. In the last few years, we´ve seen the Japanese inflation reports oscillate from flat to negative. However, in the last 6 months, we have only seen negative numbers, which obviously means deflation.
Early this morning, the Japanese inflation report was released with Tokyo core CPI (consumer price index) and the national core CPI both beating expectations. Great news right?
Well, the numbers were green on the economic calendar, but they´re still negative. They were respectively -0.3% and -0.2%.
The strangest thing is that global inflation has picked up really quickly in the last several months with help from higher oil prices. But we´re seeing nothing in Japan. Japan might be a bit far, but so is China where inflation has jumped nicely alongside the rest of the globe and money doesn´t care about long distances either.
UISD/JPY has moved above the 115 big round level overnight, which looks like the beginning of a bull run. We will take a look at this forex pair shortly though.
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